Greggs warns that prices could rise again as inflation continues to soar

Greggs has warned it may be forced to increase its prices for the third time this year as inflation continues to soar.

The bakery chain added between 5p and 10p to the price of its products at the start of 2022, and raised prices again in May as a result of the increasing cost of ingredients.

Yet despite Greggs’ sales rising by 27% to £694.5m in the first six months of the year, pre-tax profits remained steady amid pricier food and packaging, resulting in the company anticipating declining profits.

Thanks to this, Greggs bosses have warned customers could expect prices to rise once more by an estimated 9% at the end of this year. 

However, Greggs’ chief executive Roisin Currie told PA News Agency that the company has fixed prices with suppliers for the next five months, meaning the cost of its food and drink should not rise any further in that time. 

Currie said: “We know the economic environment is challenging and it is tough out there for our customers, so we are doing everything we can to protect our price proposition.

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“We are not immune to cost inflation but we are trying hard to mitigate against it impacting customers.”

In an attempt to claw back profits, Greggs plans on extending its opening hours, offering more menu options and launching more delivery services in order to gain more evening sales.

Though keeping prices as low as possible isn’t the only way Greggs is helping its customers during the cost of living crisis; back in May, the bakery chain launched two new school breakfast clubs that allows pupils to enjoy a nutritious morning meal for free.

The new clubs at East Ward Primary School in Bury and Castleton Primary School in Rochdale joined eighteen existing schemes running across the region.

They offer children a selection of breakfast options to enjoy before the school day, including toast, cereal, fruit, yoghurt, juice, and milk.

Lynne Hindmarch, breakfast club manager for the Greggs Foundation, said: “Through breakfast clubs such as this, we’re able to support over 46,500 children each day nationally, and new openings like these are helping us to continue heading towards reaching our target of serving 70,000 breakfasts each school day by 2025.”